The Safest Way to Profit From the “Green Rush”

In the 1840s and ’50s, people from all over the US flooded into California, hoping to find gold and strike it rich. A few did, but most were severely disappointed.

Meanwhile, a German immigrant living in New York saw a different sort of Gold Rush opportunity.

Instead of searching for gold, he decided to sell basic goods to the gold miners. It was a much safer way to build wealth.

Eventually, the immigrant’s most profitable product was a new style of sturdy pants that he sold to the miners. They were a huge success and made him incredibly rich.

It was the classic “picks and shovels” play.

As you may have guessed, this immigrant’s name was Levi Strauss. He was so successful that you may even be wearing his product right now.

Today, there’s another gold rush happening in California. But this time, it’s a “green rush” into the legal cannabis market.

And, once again, there’s a fortune to be made selling picks and shovels to the prospectors. Right now, it’s the best and safest way for regular investors to profit.

As Big as Beer and Chocolate

On January 1, it finally became legal for adults over the age of 21 to buy recreational marijuana in California. Buying pot there is now as easy as buying beer.

This is a big reason why the US legal marijuana market is expected to grow from $6.5 billion to $50 billion by 2026. That would make it the same size as the American craft beer and chocolate markets combined.

Today, investing in the legal cannabis industry is like investing in the beer industry at the end of Prohibition. Fortunes are going to be made.

That means any company that “touches the plant” cannot open a bank account. For the time being, they have to run cash-only businesses. (No US bank wants to run afoul of the US federal government.)

And, as you’d expect, any company without a bank account would have a hard time getting its stock publicly listed. That limits the options for regular US investors.

None of this will change until the US federal government legalizes marijuana. But that doesn’t mean you can’t make huge profits off this trend right now.

This is where “picks and shovels” pot stocks come in…

The idea is to own companies that supply essential products and services to the cannabis industry. That includes hydroponic growing equipment, cannabis accessories, and so forth.

Since picks and shovels companies don’t touch the plant, they are 100% legal under US federal law.

The Best Way to Grow Marijuana

The highest-grade cannabis is grown indoors using hydroponics.

Hydroponics is a method of growing plants without soil. Water-soluble fertilizer is the plants’ only source of nutrients. It’s a complicated process, but it allows the grower to control different variables more easily.

The diagram below shows how it works.

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Picks and shovels pot companies are set to explode in line with the US legal cannabis industry. But you shouldn’t put your money into just any company…